This is a Z4 Research Pre Call Note.
The 2Q20 Numbers:
- Revenues came in ahead of expectations of the now three covering analysts for the quarter. Gross margin came in at 9.9%, which is down from 1Q20's 12.7%, but still well above any quarter in 2019 or 2018. This dip may be related to COVID-19 costs. The higher than expected revenue and solid gross margin drove their second consecutive quarter of positive earnings after years of losses and a beat vs Street estimates.
- Revenue Comment: "Significant revenue growth in the Heavy Fabrications and Industrial Solutions